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Equity-Accounted Investments And Other Long-Term Assets | 3 Months Ended
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Sep. 30, 2021
Equity-Accounted Investments And Other Long-Term Assets [Abstract] |
Equity-Accounted Investments And Other Long-Term Assets | 5.Equity-accounted investments and other long-term assets Refer to Note 8 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2021, for additional information regarding its equity-accounted investments and other long-term assets. Equity-accounted investments The Company’s ownership percentage in its equity-accounted investments as of September 30, 2021, and June 30, 2021, was as follows:
|  |  |  |  |  |  |  |  |  |  |  |  |  | September 30, |  | June 30, |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2021 |  | 2021 |
| Finbond Group Limited (“Finbond”) |  | 31.5 | % |  | 31.5 | % |
| Carbon Tech Limited (“Carbon”) |  | 25.0 | % |  | 25.0 | % |
| SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”) |  | 50.0 | % |  | 50.0 | % |
Finbond As of September 30, 2021, the Company owned 268,820,933 shares in Finbond representing approximately 31.5% of its issued and outstanding ordinary shares. Finbond is listed on the Johannesburg Stock Exchange (“JSE”) and its closing price on September 30, 2021, the last trading day of the month, was ZAR 1.40 per share. The market value, using the September 30, 2021, closing price, of the Company’s holding in Finbond on September 30, 2021, was ZAR 376.3 million ($24.9 million translated at exchange rates applicable as of September 30, 2021). Impairment of investment in Finbond during the three months ended September 2020 Finbond published its half-year results to August 2020 in October 2020, which included the financial impact of the COVID-19 pandemic on its reported results during that reporting period. Finbond incurred losses during the six months to August 2020, and experienced a slow-down in its lending activities. Finbond reported that its lending activities had increased again since August 2020, albeit at a slower pace compared with the prior calendar period. Finbond’s share price declined substantially during the period from its fiscal year end (February 2020) to September 30, 2020, and the weakness in its traded share price continued post September 30, 2020. The Company considered the combination of the slow-down in business activity and the lower share price as impairment indicators. The Company performed an impairment assessment of its holding in Finbond as of September 30, 2020. The Company recorded an impairment loss of $16.8 million during the quarter ended September 30, 2020, related to the other-than-temporary decrease in Finbond’s value, which represented the difference between the determined fair value of the Company’s interest in Finbond and the Company’s carrying value (before the impairment). There is limited trading in Finbond shares on the JSE because it has three shareholders that own approximately 90% of its issued and outstanding shares between them. The Company calculated a fair value per share for Finbond by applying a liquidity discount of 15% to the September 30, 2020, Finbond closing price of ZAR 1.04. Summarized below is the movement in equity-accounted investments and loans provided to equity-accounted investments during the three months ended September 30, 2021:
|  |  |  |  |  |  |  | Finbond |  | Other(1) |  | Total |
| Investment in equity |  |  |  |  |  |  |  |  |
|  | Balance as of June 30, 2021 | $ | 9,822 |  | $ | 182 |  | $ | 10,004 |
|  |  | Stock-based compensation |  | 9 |  |  | - |  |  | 9 |
|  |  | Comprehensive loss: |  | (1,800) |  |  | - |  |  | (1,800) |
|  |  |  | Other comprehensive loss |  | (644) |  |  | - |  |  | (644) |
|  |  |  | Equity accounted loss |  | (1,156) |  |  | - |  |  | (1,156) |
|  |  |  |  | Share of net loss |  | (1,156) |  |  | - |  |  | (1,156) |
|  |  | Dividends received |  | - |  |  | (137) |  |  | (137) |
|  |  | Foreign currency adjustment(2) |  | (464) |  |  | (5) |  |  | (469) |
|  | Balance as of September 30, 2021 | $ | 7,567 |  | $ | 40 |  | $ | 7,607 |
|  |  |  |  |  |  |  | Equity |  | Loans |  | Total |
| Carrying amount as of : |  |  |  |  |  |  |  |  |
|  |  | June 30, 2021 | $ | 10,004 |  | $ | - |  | $ | 10,004 |
|  |  | September 30, 2021 | $ | 7,607 |  | $ | - |  | $ | 7,607 |
(1) Includes Carbon and SmartSwitch Namibia. (2) The foreign currency adjustment represents the effects of the fluctuations of the ZAR, Nigerian naira and Namibian dollar, against the U.S. dollar on the carrying value. Other long-term assets Summarized below is the breakdown of other long-term assets as of September 30, 2021, and June 30, 2021:
|  |  |  |  |  |  |  |  |  |  |  |  | September 30, |  |  | June 30,
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2021 |  |  | 2021
| Total equity investments | $ | 76,297 |  | $ | 76,297
|  |  | Investment in 15% of Cell C, at fair value (Note 4) |  | - |  |  | -
|  |  | Investment in 12% of MobiKwik |  | 76,297 |  |  | 76,297
|  |  | Investment in 87.5% of CPS(1) |  | - |  |  | -
| Total held to maturity investments |  | - |  |  | -
|  |  | Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes(2) |  | - |  |  | -
| Long-term portion of amount due related to sale of interest in Bank Frick(3) |  | - |  |  | 3,890
| Policy holder assets under investment contracts (Note 7) |  | 380 |  |  | 381
| Reinsurance assets under insurance contracts (Note 7) |  | 1,239 |  |  | 1,298
|  |  | Total other long-term assets | $ | 77,916 |  | $ | 81,866
(1) On October 16, 2020, the High Court of South Africa, Gauteng Division, Pretoria ordered that CPS be placed into liquidation. (2) The note is included in accounts receivable, net and other receivables as of September 30, 2021 (refer to Note 2). (3) Long-term portion of amount due related to sale of interest in Bank Frick as of June 30, 2021, represents the amount due by the purchaser in July 2022 and is included in accounts receivable, net, and other receivables as of September 30, 2021 (refer to Note 2). MobiKwik The Company did not identify any observable price changes in orderly transactions for similar or identical equity securities issued by MobiKwik during the three months ended September 30, 2021. In October 2021, the Company converted its 310,781 shares of compulsorily convertible cumulative preferences shares to 6,215,620 equity shares in anticipation of MobiKwik’s initial public offering. The Company’s investment percentage remained unchanged following the conversion. Summarized below are the components of the Company’s equity securities without readily determinable fair value and held to maturity investments as of September 30, 2021:
|  |  |  |  |  |  |  |  |  |  | Cost basis |  |  | Unrealized holding |  |  | Unrealized holding |  |  | Carrying |
|  |  |  |  |  |  |  |  |  |  |  |  | gains |  |  | losses |  |  | value |
| Equity securities: |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in MobiKwik | $ | 26,993 |  | $ | 49,304 |  | $ | - |  | $ | 76,297 |
|  | Investment in CPS |  | - |  |  | - |  |  | - |  |  | - |
| Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in Cedar Cellular notes (Note 2) |  | - |  |  | - |  |  | - |  |  | - |
|  |  |  | Total | $ | 26,993 |  | $ | 49,304 |  | $ | - |  | $ | 76,297 |
Summarized below are the components of the Company’s equity securities without readily determinable fair value and held to maturity investments as of June 30, 2021:
|  |  |  |  |  |  |  |  |  |  | Cost basis |  |  | Unrealized holding |  |  | Unrealized holding |  |  | Carrying |
|  |  |  |  |  |  |  |  |  |  |  |  | gains |  |  | losses |  |  | value |
| Equity securities: |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in MobiKwik | $ | 26,993 |  | $ | 49,304 |  | $ | - |  | $ | 76,297 |
|  | Investment in CPS |  | - |  |  | - |  |  | - |  |  | - |
| Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in Cedar Cellular notes |  | - |  |  | - |  |  | - |  |  | - |
|  |  |  | Total | $ | 26,993 |  | $ | 49,304 |  | $ | - |  | $ | 76,297 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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